Thiruvananthapuram: Amidst the global slowdown in the IT/ITES sectors, the Kerala IT sector has something to cheer about - the slew of relaxations for setting up Special Economic Zones announced by the central government.
Acquiring land for construction has been a major issue in Kerala and when it comes to large areas of land, it is nearly impossible. Even now, many major projects are caught up in controversies over land acquisition. It is at such a juncture that the Centre on Thursday announced relaxations in the minimum land required for allowing SEZs.
The Kerala IT sector hopes that the relaxations will attract small and medium sized firms to set up SEZs here. The investment required for setting up SEZs is also considerably less under the new rules.
“With the fresh exceptions, expect more SEZs to come up in the state in the near future and thereby open up more job opportunities,” said IT principal secretary, P. H. Kurian. “The centre has indeed addressed one crucial problem faced by the state--getting land.”
Sources in the IT sector believe the relaxations have come at the right time and will encourage IT companies to invest more in developing infrastructure despite the slowdown in the IT sector. The exit option for SEZs may also offer flexibility to units to withdraw in times of crisis.
Though he welcomed the decision to relax the norms, Joseph Mathew, IT adviser to former Chief Minister V.S. Achuthanandan, warned of massive land acquisition under the pretext of setting up SEZs.
"In the post-Nandigram scenario, the Centre was quite averse to massive land acquisition. However, it seems the government is now favouring land acquisition. Anyway, making the conditions for SEZs simpler will also help small and bigger firms to avail the benefits of SEZs," he said.
Only 7 out of 32 okayed took off
Even as the Kerala IT sector as a whole expects more Special Economic Zones to come up in the state with the Centre relaxing norms, only seven out of the 32 SEZs approved have taken off. Some of the private players have even withdrawn their plans.
While ten SEZs are under various stages of implementation, ten others have sought an extension for implementation. Five private developers have not even applied for the extension – an indication that they are pulling out from their plans to have SEZs.
The SEZs that have become operational are those promoted by the government, including the Technopark and Infopark. “Though the centre had relaxed the norms for SEZs with the stated objective of attracting more of them, it needs to be examined why the Special Economic Zones that were already approved in the private sector have not yet taken off,” said Joseph Mathew, IT adviser to former chief minister V.S. Achuthanandan.
Meanwhile, IT entrepreneurs feel that the huge investments involved and the lack of government support are some reasons for the slow progress of the private SEZs. The escalating cost of construction is also a decisive factor
http://www.deccanchronicle.com/130420/news-current-affairs/article/relaxation-cheers-it-sectorRelaxations for setting up SEZ cheers the Kerala IT sector
Thiruvananthapuram: Amidst the global slowdown in the IT/ITES sectors, the Kerala IT sector has something to cheer about - the slew of relaxations for setting up Special Economic Zones announced by the central government.
Acquiring land for construction has been a major issue in Kerala and when it comes to large areas of land, it is nearly impossible. Even now, many major projects are caught up in controversies over land acquisition. It is at such a juncture that the Centre on Thursday announced relaxations in the minimum land required for allowing SEZs.
The Kerala IT sector hopes that the relaxations will attract small and medium sized firms to set up SEZs here. The investment required for setting up SEZs is also considerably less under the new rules.
“With the fresh exceptions, expect more SEZs to come up in the state in the near future and thereby open up more job opportunities,” said IT principal secretary, P. H. Kurian. “The centre has indeed addressed one crucial problem faced by the state--getting land.”
Sources in the IT sector believe the relaxations have come at the right time and will encourage IT companies to invest more in developing infrastructure despite the slowdown in the IT sector. The exit option for SEZs may also offer flexibility to units to withdraw in times of crisis.
Though he welcomed the decision to relax the norms, Joseph Mathew, IT adviser to former Chief Minister V.S. Achuthanandan, warned of massive land acquisition under the pretext of setting up SEZs.
"In the post-Nandigram scenario, the Centre was quite averse to massive land acquisition. However, it seems the government is now favouring land acquisition. Anyway, making the conditions for SEZs simpler will also help small and bigger firms to avail the benefits of SEZs," he said.
Only 7 out of 32 okayed took off
Even as the Kerala IT sector as a whole expects more Special Economic Zones to come up in the state with the Centre relaxing norms, only seven out of the 32 SEZs approved have taken off. Some of the private players have even withdrawn their plans.
While ten SEZs are under various stages of implementation, ten others have sought an extension for implementation. Five private developers have not even applied for the extension – an indication that they are pulling out from their plans to have SEZs.
The SEZs that have become operational are those promoted by the government, including the Technopark and Infopark. “Though the centre had relaxed the norms for SEZs with the stated objective of attracting more of them, it needs to be examined why the Special Economic Zones that were already approved in the private sector have not yet taken off,” said Joseph Mathew, IT adviser to former chief minister V.S. Achuthanandan.
Meanwhile, IT entrepreneurs feel that the huge investments involved and the lack of government support are some reasons for the slow progress of the private SEZs. The escalating cost of construction is also a decisive factor
http://www.deccanchronicle.com/130420/news-current-affairs/article/relaxation-cheers-it-sector